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Technology Stocks : Dell Technologies Inc. -- Ignore unavailable to you. Want to Upgrade?

To: kemble s. matter who wrote (83824)	12/5/1998 12:07:00 PM
From: Mohan Marette	Read Replies (2) \| Respond to of 176387

Dell taking aim at CPQ. Sorry Dell sells no sub-cheapie. Hi Kemble: I think Dell's strategy here is to attack Compaq where it hurts,right here. Compare the prices of the DELL and CPQ and the configuration of the two systems,one is powerful the other so so... Also note DELL's not sub-cheapie,add the monitor,printer and the other stuff the fully configured system will be around $1400-$1500,Dell hardly sells a striped down unit by itself.Also note this is just one model based on the Celeron low-end processor.I believe the strategy is to attack CPQ and gain market share without losing anything in the process.Which system you think customer will choose a 333 Mhz systems for $850.00 or a less powerful systems based on 266 Mhz processor for $985.00,I think the strategy is quite clear. DELL Optiplex G1 model. one system based on an Intel Celeron processor to $849, or $1,048 with a 15-inch monitor. This is a reduction of 11 percent. This G1 model includes a 333-MHz processor and a 4.3GB hard drive. VS Compaq Computer Deskpro EP Series 6266X/4300/CDS $985 When Compaq introduced a sub-$1,000 PC last year, tremors were felt across the computer industry. Few manufacturers could turn a profit on a PC priced so low, yet Compaq's entry legitimized the price category and competitors knew they'd have to try to match the company's offering. Compaq's first sub-$1,000 machine bore a Presario label--a line of systems aimed at cost-conscious consumers. Now, with its $985 Deskpro, Compaq is applying the same strategy to the corporate arena. Although this isn't a power user's system, it has all the muscle necessary for running Windows 98 or NT and all the basic business applications that make up the heart of corporate computing. Outfitted with a 266MHz Pentium II processor, the machine comes with an abundant 48MB memory and a 4.3GB hard drive. There's a 24-speed CD-ROM drive and a 56Kbps fax modem. Compaq bundles its systems with its own Business Pro Audio circuitry, though speakers cost extra. So does a monitor: Expect to ante up about $235 for a 15-inch model. cgi.pathfinder.com